LA Private

Speed bumps in Melbourne, but Transurban stays on course

Transurban (ASX:TCL) reported a 1.1% rise in average daily traffic (ADT) for the September 2024 quarter, reaching 2.5 million daily trips across its assets. While Sydney and Brisbane saw increases of 1.9% and 1.3%, respectively, Melbourne experienced a 1% decline due to ongoing construction projects such as the West Gate Tunnel and lower container volumes through the Port of Melbourne.

Sydney benefited from a significant 11.5% rise in traffic on the WestConnex route, bolstered by the completion of the Rozelle Interchange and the opening of Sydney Gateway. In contrast, the Western Link in Melbourne experienced a 1.5% decline, reflecting challenges from infrastructure works along the West Gate Freeway.

Internationally, Transurban’s North American assets posted the strongest performance, with a 6.5% rise in ADT, largely driven by a 11.6% increase on the 95 Express Lanes, thanks to the Fredericksburg Extension.

CEO Michelle Jablko highlighted the strength of the company’s asset portfolio, stating, “Our roads are critical to supporting city infrastructure and meeting the needs of freight, commuters, and casual trips. While current construction impacts traffic flow, we expect long-term benefits once these projects are complete.” Jablko also reaffirmed Transurban’s FY25 distribution guidance of 65 cents per security.